While consumer confidence and economic uncertainty continue to weigh down demand, PulteGroup delivered “solid” third quarter financial results. Revenue, orders, and closings declined during the period, but CEO Ryan Marshall noted that lower interest rates could reactivate buyer demand.
By the Numbers
PulteGroup generated home sale revenues of $4.2 billion, a decrease of 2% compared to the prior-year period. The decline in revenue reflected a 5% decrease in closings to 7,529 homes, partially offset by a 3% increase in the average sales price of homes closed to $564,000. By product type, first-time and move-up buyers accounted for 39% of closing each while active adult buyers accounted for 22% of closings.
Net new orders for the third quarter decreased 6% to 6,638 homes. The builder’s cancellation rate ticked up modestly to 12% from 10% in the same period a year ago. New new orders among first-time buyers decreased 13%, decreased 3% for move-up buyers, but increased 7% among the builder’s active adult group. The value of net new orders in the period was $3.6 billion, compared with $3.9 billion in the third quarter of last year.
PulteGroup reported quarterly profit of $586 million, or $2.96 per share, down from $698 million, or $3.35 per share, in the same period a year ago. Pulte’s profit per share results outperformed the consensus estimate by Wall Street for the period.
The builder ended the period with 9,888 homes in backlog with a value of $6.2 billion.
What They’re Saying
“Within the current operating conditions, our diversified business platform is enabling PulteGroup to deliver strong financial results, while we continue to position the business for growth when buyer demand improves in the future. We are encouraged to see that interest rates have moved lower, but continue to monitor buyer demand that has been impacted by weaker consumer confidence and ongoing affordability challenges.” — Marshall
“Based on feedback from our sales associates, consumers remain engaged in the homebuying process but they are proceeding with caution given concerns that range from economic weakness and job stability to stretched affordability. That is why buyer response to the decrease in interest rates was more muted than we experienced in other periods of recent rate declines. There is a clear offset if rates are coming down because of the economy and people are worried about their jobs. I believe that is the scenario we are experiencing right now.” — Marshall
“At this time, we estimate that tariffs will effectively have little to no impact on our closings in Q4 of 2025, but could increase build costs by approximately $1,500 per home starting in 2026.” — Jim Ossowski, executive vice president and chief financial officer
“I think it is appropriate to offer thoughts on comments issued recently by President Trump regarding the need for more housing and better affordability. We agree with the President’s perspective as it is consistent with industry estimates that routinely represent an underbuild in this country of roughly three to four million houses. While the supply deficit certainly has an impact on affordability generally, the complexities of the new home construction industry dictate that tackling a problem of this scale requires a coordinated and comprehensive approach that brings together federal, state, and local leaders working in partnership with the new home construction industry. We share the President’s focus on housing in wanting to make the American Dream more attainable for everyone. We look forward to addressing the issue of housing in America and working with the administration in developing actionable solutions that are consistent with Pulte’s long-term strategic plans.” — Marshall
